Thunderstruck Resources Ltd. — Interim / Quarterly Report 2023

May 19, 2023

THUNDERSTRUCK RESOURCES LTD.

Condensed Consolidated Interim Financial Statements

First Quarter March 31, 2023

(Expressed in Canadian Dollars) (Unaudited)

NOTICE OF NO AUDITOR REVIEW OF CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

In accordance with National Instrument 51-102 Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of these condensed interim financial statements they must be accompanied by a notice indicating that these condensed consolidated interim financial statements have not been reviewed by the Company’s auditors.

The accompanying unaudited condensed interim financial statements of the Company have been prepared by and are the responsibility of the Company’s management.

THUNDERSTRUCK RESOURCES LTD.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION (Unaudited - Expressed in Canadian Dollars)

AS AT

AS AT
	March 31,	December 31,
	2023	2022
	$	$
ASSETS
Current assets
Cash	33,645	313,770
Amounts receivable	13,243	13,827
Prepaid expenses	-	30,133
	46,888	357,730
Equipment (note 4)	165,030	177,560
Exploration advances and deposits	254,472	254,074
Exploration and evaluation assets(note 3)	3,549,238	3,346,913
Total Assets	4,015,628	4,136,277
LIABILITIES
Current Liabilities
Accountspayable and accrued liabilities(note 7)	**194,585 **	91,319
	194,585	91,319
EQUITY
Share capital (note 6(b))	8,452,054	8,452,054
Reserves (note 6(e))	1,267,901	1,267,901
Deficit	(5,898,912)	(5,674,997)
Total Equity	3,821,043	4,044,958
Total Equity and Liabilities	4,015,628	4,136,277

Nature and continuance of operations (note 1) Subsequent events (note 10)

Approved by the Board of Directors and authorized for issue on May 19, 2023.

On behalf of the Board:

“Br ce Bradle ” “Brien Lundin” y y

(Director) (Director)

See accompanying notes to the condensed consolidated interim financial statements

THUNDERSTRUCK RESOURCES LTD.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF LOSS AND COMPREHENSIVE LOSS (Unaudited - Expressed in Canadian Dollars) FOR THE THREE MONTHS ENDED MARCH 31,

2023	2022
$ EXPENSES Advertising and promotion 2,706 Consulting fees 35,369 Depreciation (note 4) 259 Directors’ fees (note 7) 3,000 Management fees (note 7) 55,500 Office and miscellaneous 12,906 Professional fees 34,098 Rent (note 7) 9,450 Share-based compensation (note 6(e)) - Shareholder communication 15,027 Telephone 1,130 Travel and accommodation 42,062 Trust and filingfees 12,465	$ 7,925 100,000 481 3,000 95,000 6,360 33,625 9,450 390,316 4,287 2,309 4,283 8,148
Loss from operations (223,972) Finance expense (note 5) - Foreign exchange 57	(665,184) (2,390) (5,846)
Net loss and comprehensive loss for theperiod (223,915)	(673,420)
Basic and diluted lossper common share $ (0.01)	$ (0.03)
Weighted average common shares outstanding 25,402,562	20,030,213

See accompanying notes to the condensed consolidated interim financial statements

THUNDERSTRUCK RESOURCES LTD. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOW (Unaudited - Expressed in Canadian dollars) FOR THE THREE MONTHS ENDED MARCH 31,

FOR THE THREE MONTHS ENDED MARCH 31,
	2023	2022
Cash provided by (used for):	$	$
Operating activities
Loss for the period	(223,915)	(673,420)
Items not involving the use of cash:
Depreciation	259	481
Finance expense	-	2,390
Share-based compensation	-	390,316
Unrealized foreign exchange	(398)	499
Changes in non-cash operating capital:
Amounts receivable	584	3,643
Prepaid expenses	30,133	(17,805)
Accountspayable and accrued liabilities	31,091	(11,911)
Cash used in operating activities	(162,246)	(305,807)
Investing activities
Exploration advances and deposits	-	(4,088)
Exploration and evaluation expenditures	(117,879)	(203,309)
Cash used in investing activities	(117,879)	(207,397)
Financing activities
Private placement	-	2,500,000
Share issue costs	-	(25,250)
Options exercised	-	63,500
Warrants exercised	-	20,000
Leasepayments	-	(57,847)
Cashprovided by financing activities	-	2,500,403
Change in cash during the period	(280,125)	1,987,199
Cash, beginningofperiod	313,770	57,556
Cash,end of theperiod	33,645	2,044,755

Supplementary disclosure:

As at March 31, 2023, the Company had $135,415 (2022 - $57,704) in exploration expenditures in accounts payable and incurred depreciation expense of $12,271 (2022 - $28,175) capitalized to exploration and evaluation assets.

See accompanying notes to the condensed consolidated interim financial statements

THUNDERSTRUCK RESOURCES LTD.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY (Unaudited - Expressed in Canadian dollars)

Number of shares*	Share capital Reserves Deficit Total
December 31, 2021 18,074,705 Private placement 7,142,857 Share issue costs - Share-based compensation - Options exercised 145,000 Warrants exercised 40,000 Net loss for theperiod -	$ $ $ $ 5,834,112 938,527 (4,533,757) 2,238,882 2,500,000 - - 2,500,000 (25,250) - - (25,250) - 390,316 - 390,316 124,442 (60,942) - 63,500 20,000 - 20,000 - - (673,420) (673,420)
March 31, 2022 25,402,562	8,453,304 1,267,901 (5,207,177) 4,514,028
Share issue costs - Net loss for theperiod -	(1,250) - - (1,250) - - (467,820) (467,820)
December 31, 2022 25,402,562	8,452,054 1,267,901 (5,674,997) 4,044,958
Net loss for theperiod -	- - (223,915) (223,915)
March 31, 2023 25,402,562	8,452,054 1,267,901 (5,898,912) 3,821,043

*On April 24, 2023, the Company completed a share consolidation on the basis of 1 new common share for 5 old common shares – refer to note 6. For accounting purposes, recognition of the share consolidation has been made retroactively such that all share and per share numbers have been adjusted to reflect the share consolidation.

See accompanying notes to the condensed consolidated interim financial statements

THUNDERSTRUCK RESOURCES LTD. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited - Expressed in Canadian dollars) FOR THE THREE MONTHS ENDED MARCH 31, 2023

1. NATURE AND CONTINUANCE OF OPERATIONS

Thunderstruck Resources Ltd. (the "Company") was incorporated under the British Columbia Business Corporations Act on October 27, 2011 and its principal activity is the acquisition and exploration of mineral properties.

The Company’s registered office address is Suite 2080 - 777 Hornby Street, Vancouver, BC V6Z 1S4 and its principal place of business is Suite 1500 – 409 Granville Street, Vancouver, BC V6C 1T2.

The Company’s principal mineral property interest is a project located on the main island of Fiji. The Company is in the process of exploring this project and has yet to determine if the project contains economically recoverable mineral reserves. The Company’s continuing operations and the underlying value of the project is entirely dependent upon the existence of economically recoverable mineral reserves, the ability of the Company to obtain the necessary financing to complete the exploration and development of the project, obtaining the necessary permits to mine, future profitable production from any mine and any proceeds from the disposition of the project.

These condensed consolidated interim financial statements have been prepared assuming the Company will continue on a going-concern basis. The Company reported a net loss for the three months ended March 31, 2023 of $223,915 and as of that date had an accumulated deficit of $5,898,912 and working capital deficiency of $147,697. The Company incurred negative cash flows from operations of $162,246 for the same period. The Company will need to raise additional funds in the short term to continue to be able to operate, as there’s no source of operating revenue, and is dependent upon the future receipt of equity financing to maintain its operations and to advance its current project. The ability of the Company to continue as a going concern depends upon its ability to develop profitable operations and to continue to raise additional financing to maintain its working capital. At the present time, there are material uncertainties which cast significant doubt on the ability of the Company to continue as a going concern.

There can be no assurance that the Company will be able to continue to raise funds, in which case the Company may be unable to meet its obligations. Should the Company be unable to realize on its assets and discharge its liabilities in the normal course of business, the net realizable value of its assets may be materially less than the amounts recorded on the condensed consolidated interim statements of financial position.

2. SIGNIFICANT ACCOUNTING POLICIES

Statement of compliance

There can be no assurance that the Company will be able to continue to raise funds, in which case the Company may be unable to meet its obligations. Should the Company be unable to realize on its assets and discharge its liabilities in the normal course of business, the net realizable value of its assets may be materially less than the amounts recorded on the condensed consolidated interim statements of financial position.

These condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") applicable to the preparation of interim financial statement, including IAS 34, Interim Financial Reporting. Accordingly, these financial statements do not include all of the information and footnotes required by IFRS for complete financial statements for year-end reporting purposes. These financial statements should be read in conjunction with the Company’s financial statements for the year ended December 31, 2022, which have been prepared in accordance with IFRS as issued by the IASB.

The accounting policies applied by the Company in these financial statements are the same as those applied by the Company in its most recent annual financial statements for the year December 31, 2022 as filed on SEDAR at www.sedar.com

Basis of measurement

These condensed consolidated interim financial statements have been prepared on a historical cost basis except for financial instruments classified at fair value through profit or loss, which are stated at their fair value. In addition, these condensed consolidated interim financial statements have been prepared using the accrual basis of accounting, except for the cash flow information.

THUNDERSTRUCK RESOURCES LTD. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited - Expressed in Canadian dollars) FOR THE THREE MONTHS ENDED MARCH 31, 2023

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

Basis of measurement (continued)

These condensed consolidated interim financial statements include the accounts of the Company and its 100% controlled entity, Thunderstruck Limited (a Fijian corporation) (“Thunderstruck Fiji”) and Thunderstruck Fiji’s 100% controlled entity, Aljen (Pacific) Limited (a Fijian corporation).

Inter-company balances and transactions, including unrealized income and expenses arising from inter-company transactions, are eliminated on consolidation.

These condensed consolidated interim financial statements are presented in Canadian dollars, which is also the functional currency of all the entities.

Use of judgements and estimates

The preparation of these condensed consolidated interim financial statements requires management to use judgment in applying its accounting policies and estimates and assumptions about the future. Estimates and other judgments are regularly evaluated and are based on management’s experience and other factors, including expectations about future events that are believed to be reasonable under the circumstances. The following are the most significant accounting judgments and estimates that the Company has made in the preparation of these condensed consolidated interim financial statements.

Critical judgements in applying accounting policies:

The following are critical judgments that management has made in the process of applying accounting policies and that have the most significant effect on the amounts recognized in the financial statements:

• The determination that there are no pervasive indicators which would require an impairment provision in connection with the carrying value of the company’s exploration and evaluation assets.

• The determination that the Company will continue as a going concern for the next year.

Key sources of estimation uncertainty:

Significant assumptions about the future and other sources of estimation uncertainty that management has made at the financial position reporting date, that could result in a material adjustment to the carrying amounts of assets and liabilities, in the event that actual results differ from assumptions made, relate to, but are not limited to, the following:

Share-based payments

The Company measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. Equity-settled transactions with non-employees are recorded at the fair value of the service provided, where this is readily determinable. In other instances, they are recorded at the fair value of the equity instruments issued. Estimating fair value for share-based payment transactions requires determining the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determining the most appropriate inputs to the valuation model including the expected life of the share-based award, volatility and dividend yield and making assumptions about them.

Deferred tax assets

The Company estimates the expected manner and timing of the realization or settlement of the carrying value of its assets and liabilities and applies the tax rates that are enacted or substantively enacted on the estimated dates of realization or settlement.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited - Expressed in Canadian dollars) FOR THE THREE MONTHS ENDED MARCH 31, 2023

THUNDERSTRUCK RESOURCES LTD.

3. EXPLORATION AND EVALUATION ASSETS

	Fijian
	Project,Fiji
	$
Balance, December 31, 2021	2,154,892
Assay	86,975
Camp costs	183,308
Community relations	28,511
Depreciation (note 4)	63,324
Drilling and site works	338,335
Field office	255,171
Geological	116,897
Management	80,379
Supplies	39,121
Balance, December 31, 2022	3,346,913
Assay	22,158
Camp costs	13,526
Community relations	554
Depreciation (note 4)	12,271
Drilling and site works	9,050
Field office	63,710
Geological	66,091
Management	13,754
Supplies	1,211
Balance, March 31, 2023	3,549,238

Fijian Project, Island of Viti Levu, Fiji

On August 4, 2016, the Company entered into a Share Sale Agreement (the “Agreement”) to acquire all of the issued and outstanding shares of Aljen (Pacific) Limited (“Aljen”), a private Fijian company holding legal title to a portfolio of base metal and gold properties located on the island of Viti Levu, Fiji (the “Properties”).

Pursuant to the Agreement, the Company paid cash of AUD$158,000 plus VAT and issued 90,000 common shares of the Company. The Company is required to issue a further 200,000 common shares of the Company in the event the Company or its successors either a) identify indicated mineral resources (or better and as prepared in compliance with NI 43-101) containing a minimum of 250,000 ounces of gold or 3,000,000 tonnes of copper, zinc or silver on the Properties; or b) completes a prefeasibility study on the Properties.

The Company is satisfied that evidence of title to the Properties is adequate and acceptable to prevailing Fijian standards with respect to the current stage of exploration on these Properties. Although the Company is unaware of any defects in title to its Properties, no guarantee can be made that none exist.

THUNDERSTRUCK RESOURCES LTD. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited - Expressed in Canadian dollars) FOR THE THREE MONTHS ENDED MARCH 31, 2023

4. EQUIPMENT

Equipment Vehicles	Right-of-use assets (Vehicles) Total
Cost Balance, December 31, 2021 $ 6,500 $ 24,547 Additions 16,753 44,238 Buyout of leases - 110,184 Disposals - -	$ 343,949 $ 374,996 30,996 91,987 (310,952) (200,768) (63,993) (63,993)
Balance, December 31, 2022 and March 31,2023 $ 23,253 $ 178,969	$ - $ 202,222
Accumulated Depreciation Balance, December 31, 2021 $ 3,828 $ 1,622 Depreciation 2,689 16,523 Buyout of leases - - Disposals - -	$ 198,341 $ 203,791 45,910 65,122 (180,258) (180,258) (63,993) (63,993)
Balance, December 31, 2022 $ 6,517 $ 18,145 Depreciation 1,498 11,032	$ - $ 24,662 - 12,530
Balance,March 31,2023 $ 8,015$ 29,177	$ -$ 37,192
Net Book Value Balance, December 31, 2022 $ 16,736 $ 160,824 Balance,March 31,2023 $ 15,238$ 149,792	$ - $ 177,560 $ -$ 165,030

5. LEASE LIABILITIES

The following is a continuity schedule of lease liability for the years presented:

		March 31,	December 31,
		2023	2022
Balance, beginning of the period	$	- $	174,456
Lease additions in the period		-	30,996
Accrued finance expense		-	4,070
Foreign exchange		-	(16,186)
Lease payments		-	(62,297)
Buyout of leases		-	(131,039)
Balance,end of theperiod	$	-$	-
Current (less than one year)	$	- $	-
Long-term		-	-
Balance, end ofthe period	$	-$	-

The Company entered into one additional vehicle lease in the year ended December 31, 2022 and has applied an incremental borrowing rate of 7.00%. The Company bought out five vehicle leases during the year ended December 31, 2022.

THUNDERSTRUCK RESOURCES LTD. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited - Expressed in Canadian dollars) FOR THE THREE MONTHS ENDED MARCH 31, 2023

6. SHARE CAPITAL

a) Authorized share capital

As at March 31, 2023, the authorized share capital consisted of an unlimited number of common shares without par value and an unlimited number of preferred shares with no par value.

On April 24, 2023, the Company completed a share consolidation on the basis of 1 new common share for 5 old common shares (note 10). For accounting purposes, recognition of this consolidation has been made retroactively such that all share, per share, stock option and share purchase warrant numbers have been adjusted to reflect the consolidation.

b) Issued share capital

For the three months ended March 31, 2023

The Company did not complete any private placements in the period ended March 31, 2023.

For the year ended December 31, 2022

On March 8, 2022, the Company completed a private placement of 7,142,857 units, at a price of $0.35 per unit, for gross proceeds of $2,500,000. Each unit consisted of one common share and one share purchase warrant. Each whole warrant entitles the holder to purchase a common share at a price of $0.75 per share until March 8, 2027. The warrants are subject to accelerated exercise provisions such that if the closing price of the Company’s common shares exceeds $1.50 per share for a period of 20 consecutive trading days, the Company may give notice of the acceleration of the warrants’ term to a period of 30 days following such notice. No finders’ fees were payable in connection with the private placement.

c) Share purchase options

The Company has established a stock option plan for its directors, officers and technical consultants under which the Company may grant options from time to time to acquire a maximum number of common shares of up to 10% of the issued and outstanding Common Shares. The exercise price of each option granted under the plan shall be determined by the Board of Directors. Options may be granted for a maximum term of ten years from the date of the grant, are non-transferable and expire within 90 days of termination of employment or holding office as director or officer of the Company. Unless otherwise stated, the options fully vest when granted.

The following is a summary of the changes in the Company’s outstanding stock options:

	March 31,	2023	December	31, 2022
		Weighted		Weighted
	Number of	Average	Number of	Average
	Options	Exercise Price	Options	Exercise Price
		$		$
Balance, beginning of the period	2,276,000)	0.43)	1,601,000)	0.42
Granted	-)	-)	960,000)	0.43)
Exercised	-	-	(145,000)	0.44
Expired/Forfeited	(70,000)	0.48	(140,000)	0.33
Balance,end of theperiod(1)	2,206,000)	0.43)	2,276,000)	0.43)

(1) As at March 31, 2023, the weighted-average remaining contractual life of stock options outstanding is 5.90 years (December 31, 2022 – 6.55 years).

THUNDERSTRUCK RESOURCES LTD. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited - Expressed in Canadian dollars) FOR THE THREE MONTHS ENDED MARCH 31, 2023

6. SHARE CAPITAL (continued)

c) Share purchase options (continued)

Summary of stock options outstanding and exercisable at March 31, 2023:

Number Outstanding	Exercise
and Exercisable	Price	ExpiryDate
	$
60,000	0.40	June 25, 2023
180,000	0.25	June 25, 2025
30,000	0.25	September 22, 2025
10,000	0.35	December 3, 2025
6,000	0.375	April 16, 2026
230,000	0.425	August 26, 2026
60,000	0.50	April 13, 2027
75,000	0.45	September 6, 2027
180,000	0.45	March 13, 2028
20,000	0.275	October 9, 2028
210,000	0.35	April 5, 2029
170,000	0.375	January 30, 2030
180,000	0.575	September 23, 2030
45,000	0.40	February 19, 2031
140,000	0.325	January 21, 2032
120,000	0.575	February 13, 2032
350,000	0.475	March 8, 2032
140,000	0.35	March 29,2032
2,206,000

d) Share purchase warrants

The following is a summary of the changes in the Company’s outstanding warrants:

	March 31,	2023	December	31, 2022
		Weighted		Weighted
	Number of	Average	Number of	Average
	warrants	Exercise Price	warrants	Exercise Price
		$		$
Balance, beginning of the period	13,447,018	0.68	8,522,019	0.64
Granted	-	-	7,142,857	0.75
Exercised	-	-	(40,000)	0.50
Expired	(1,050,000)	0.75	(2,177,858)	0.75
Balance,end of theperiod	12,397,018	0.67	13,447,018	0.68

THUNDERSTRUCK RESOURCES LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited - Expressed in Canadian dollars) FOR THE THREE MONTHS ENDED MARCH 31, 2023

6. SHARE CAPITAL (continued)

d) Share purchase warrants (continued)

Summary of warrants outstanding as at March 31, 2023:

Number	Exercise
Outstanding	Price	ExpiryDate
	$
452,400	0.75	May 25, 2023(1)
250,000	0.75	October 9, 2023(1)
190,367	0.75	November 9, 2023(1)
568,323	0.75	October 22, 2024
291,571	0.50	January 5, 2025(1)
3,501,500	0.50	June 24, 2025
7,142,857	0.75	March8,2027(2)
12,397,018

• (1) The warrants are subject to an accelerated exercise provision such that if the closing price of the Company’s common shares exceeds $1.25 per share for a period of 20 consecutive trading days, the Company may give notice of the acceleration of the warrants’ terms to a period of 30 days following such notice.

• (2) The warrants are subject to an accelerated exercise provision such that if the closing price of the Company’s common shares exceeds $1.50 per share for a period of 20 consecutive trading days, the Company may give notice of the acceleration of the warrants’ terms to a period of 30 days following such notice.

e) Share-based payment reserve

The Company did not grant any options in the period ended March 31, 2023.

During the year ended December 31, 2022, the Company granted the following options:

• 280,000 options with a fair value of $75,739, or $0.2705 per option.

• 120,000 options with a fair value of $68,386, or $0.5699 per option.

• 420,000 options with a fair value of $197,635, or $0.4706 per option.

• 140,000 options with a fair value of $48,556, or $0.3468 per option.

The following weighted average assumptions were used for the Black Scholes valuation of stock options granted:

	March 31,2023	December 31,2022
Risk-free interest rate	n/a	1.87%
Expected life	n/a	8.55 years
Expected volatility	n/a	150.55%
Dividend rate	n/a	0.00%

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited - Expressed in Canadian dollars) FOR THE THREE MONTHS ENDED MARCH 31, 2023

THUNDERSTRUCK RESOURCES LTD.

7. RELATED PARTY TRANSACTIONS

Key management personnel compensation:

	2023	2022
	$	$
Consulting fees(1)	7,124	6,376
Directors’ fees	3,000	3,000
Exploration and evaluation assets - geological(2)	-	15,000
Management fees	55,500	95,000
Rent(3)	9,450	9,450
Share-based compensation	-	137,941
Total keymanagement compensation	75,074	266,767

(1) Consulting fees include fees for the former CFO.

(2) Exploration and evaluation assets include geological fees paid to a former director.

(3) Expenses paid on behalf of the CEO or to a company owned by the CEO per the CEO’s consulting agreement.

As at March 31, 2023, the Company owes various directors and officers of the Company $6,782 (December 31, 2022 - $3,032) for administrative expenses and professional fees provided. All amounts are included in accounts payable and accrued liabilities.

All transactions and balances are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration and agreed to by the related parties.

8. CAPITAL MANAGEMENT

The Company’s primary objective for managing its capital structure is to maintain financial capacity for the purpose of sustaining the future development of the business and maintaining investor, creditor and market confidence.

The Company considers its capital structure to include shareholders’ equity and working capital. To effectively manage its resources and minimize risks, the Company prepares annual expenditure budgets that are updated as necessary depending on factors including success of programs and general industry conditions. In the event that adjustments to the capital structure are necessary, the Company may consider issuing additional equity, raising debt or revising its capital investment programs.

The Company’s share capital is not subject to any external restrictions. The Company has not paid or declared any dividends since the date of incorporation, nor are any currently contemplated. There have been no changes to the Company’s approach to capital management during the year.

9. FINANCIAL INSTRUMENT RISKS

Financial instruments

The Company’s financial instruments are exposed to the following risks:

Credit Risk

The Company’s primary exposure to credit risk is the risk of illiquidity of cash, amounting to $33,645 at March 31, 2023 (December 31, 2022 - $313,770). As the Company’s policy is to limit cash holdings to instruments issued by major Canadian banks, the credit risk is considered by management to be negligible. Cash is provided to Fiji on a cash call basis to maintain minimal balances.

THUNDERSTRUCK RESOURCES LTD. NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited - Expressed in Canadian dollars) FOR THE THREE MONTHS ENDED MARCH 31, 2023

9. FINANCIAL INSTRUMENT RISKS (continued)

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to pay financial instrument liabilities as they come due. The Company’s liquidity risk from financial instruments is its need to meet operating accounts payable requirements. The Company is working to meet its capital requirements to satisfy its obligations. Liquidity will be managed through additional financing through debt and/or equity as available.

Foreign Exchange Risk

The Company’s has engaged a number of vendors in the pursuit of mineral exploration activities in Fiji. As such, the Company is exposed to some foreign currency risk. Fluctuations in the exchange rate between the Canadian dollar and Fijian dollar may have an adverse effect on the Company’s business and costs to proceed with preferred vendors. The Company may reduce its foreign currency risk as needed by substituting Canadian vendors as required. Foreign currency risk is considered low relative to the overall financial operating plan.

Interest Rate Risk

The Company has been exposed to interest rate risk on its cash. The majority of these deposits have been in discounted instruments with pre-determined fixed yields. Interest rate movements will affect the fair value of these instruments, so the Company manages maturity dates of these instruments to match cash flow needs, enabling realization at no loss in almost all cases. As at March 31, 2023, the Company maintained all of its cash balance on deposit in chequing accounts with a major Canadian bank and a major Fijian bank.

Fair Value of Financial Instruments

The Company’s cash, amounts receivable, exploration advances, accounts payable and accrued liabilities are carried at amortized cost and approximate fair value due to their short-term nature.

10. SUBSEQUENT EVENTS

• a) On April 7, 2023, granted 70,000 stock options to a consultant at an exercise price of $0.275 per common share exercisable for 5 years.

• b) On April 24, 2023, completed a share consolidation on the basis of 1 new common share for 5 old common shares – refer to note 6. No fractional shares were issued as a result of the consolidation. Fractional interests of 0.5 or greater were rounded up to the nearest whole number of common shares and fractional interests of less than 0.5 were rounded down to the nearest whole number of common shares.